The Programmatic Primer: An overview of the online advertising ecosystem

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Ted McConnell, Warc Exclusive, July 2015

In this collection of articles the various elements of the online advertising ecosystem are explained. View Summary

In this collection of articles the various elements of the online advertising ecosystem are explained. The articles enable advertisers to take advantage of the opportunities offered by programmatic advertising through understanding the companies and processes involved. This article provides an overview of the collection. Advertisers who have been smart using programmatic technology have harvested huge returns, but to the outsider the online advertising ecosystem can be confusing. To get online ecosystem buying right, it is necessary to know what needs to be learnt, how to learn, and what will be done with that knowledge. The best way for advertisers to be sure that all available tools are being used creatively is to understand the processes involved. Programmatic enables media buyers need to get the right message to the right person. Data makes matching of need to message possible.

This report examines the demographics and buying power of the Asian-American segment, focusing on the food & beverage and health & beauty categories. View Summary

This report examines the demographics and buying power of the Asian-American segment, focusing on the food & beverage and health & beauty categories.

Asian-Americans are the fastest growing demographic group in the US, with China and India replacing Mexico as the largest source of recent immigrants - 79% of Asian-American adults are immigrants or foreign-born.

With 40 countries represented, Asian-Americans are diverse and confident about sustaining their cultural roots, making them assertive about shopping tastes and preferences, and they are also digitally adept.

They are family-centric and tend to live in multi-generational households, but also have a high life expectancy, delivering more effective years of buying power.

The report looks specifically at Millennial Asian-American women, who are heads of their households, highlighting specific shopping attitudes and behaviors compared to the general market.

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Advertising in context: The anthropology of contextual media planning

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Tom Laranjo, Admap, May 2015

This article outlines five lessons from the anthropology of human behaviour that could help media planners find the most effective context for their advertising solutions. View Summary

This article outlines five lessons from the anthropology of human behaviour that could help media planners find the most effective context for their advertising solutions.

Genuine multitasking is impossible and attempting it can significantly affect people's ability to remember and focus, so the trend to target multi-screening millennials should be approached with caution.

By better understanding circadian rhythms which, for example, see enhanced creativity in the evening when people's minds are free to wander, planners can target audiences at different times of the day depending on the desired response.

The social capital gained from the way people act is determined, in large part, by the context they are in, explaining why people may behave differently at home and at work; so planners should restrict their advertising to fields that specifically match the environment.

4

Local watch: Where you live and its impact on your choices

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Nielsen, April 2015

This article defines the American 'local digerati' - people who use the internet for local information - and presents a series of statistics about their habits. View Summary

This article defines the American 'local digerati' - people who use the internet for local information - and presents a series of statistics about their habits.

Americans are watching increasing amounts of video content every day, but habits around live, time-shifted and online viewing vary by location.

Advertisers should look to the difference in viewing patterns on the local level to better understand consumers, and consider placing ads on local TV stations.

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The multicultural edge: Rising super consumers

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Nielsen, March 2015

This report focuses on the attitudes and behaviours of multicultural consumers in the US, in particular the African-American, Asian-American and Hispanic communities, who now represent the fastest growing segment of the US population. View Summary

This report focuses on the attitudes and behaviours of multicultural consumers in the US, in particular the African-American, Asian-American and Hispanic communities, who now represent the fastest growing segment of the US population.

Multicultural consumers are transforming the US mainstream as they already represent more than their numerical share across a wide range of product categories.

They are leading the way in digital devices and social media which they use to celebrate and maintain their evolving cultural identities.

They are connected, mobile-savvy and younger than the rest of the population, making them a growing consumer force in an increasingly multicultural mainstream.

6

New models for luxury marketing

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Marcia Roosevelt, Admap, February 2015, pp. 18-20

This article urges a rethink of luxury marketing, as western societies change and make mass-marketing less relevant, while other countries have different approaches to hierarchy. View Summary

This article urges a rethink of luxury marketing, as western societies change and make mass-marketing less relevant, while other countries have different approaches to hierarchy.

Luxury marketing is often dismissed and perceived as niche and irrelevant, but this is changing as technology makes culture more individualised and companies want to expand their top-tiers for greater profitability.

Research found that national and cultural values are more important than economic indicators in determining what 'luxury' means.

This led to four distinct models of 'luxury': the power of prestige, democratised performance, graceful utility, and refined beauty aesthete.

7

Consumers in 2015: Millennials take centre-stage

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Warc Trends, Toolkit 2015

This article, taken from the Warc Toolkit 2015, explains why Millennials - people aged around 18-34 years old - should be marketers' chief concern. View Summary

This article, taken from the Warc Toolkit 2015, explains why Millennials - people aged around 18-34 years old - should be marketers' chief concern.

As Millennials age their spending power is increasing, therefore brands wishing to grow should pay attention to millennial attitudes.

This group has very different media consumption partners to older generations, and the habits of this first 'media native' generation offer useful pointers to future behaviours of subsequent generations.

TV and digital are working together in new ways, and amongst Millennials TV often drives engagement, with digital providing reach and frequency.

Millennials also know - and care - more about the companies providing products and services than any previous generation, making 'brand purpose' more than just a fad.

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Shopper marketing in 2015: Total Retail

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Warc Trends, Toolkit 2015

This article, taken from the Warc Toolkit 2015, explores rising consumer expectations of brand experience both online and offline, as focus on in-store experience is renewed. View Summary

This article, taken from the Warc Toolkit 2015, explores rising consumer expectations of brand experience both online and offline, as focus on in-store experience is renewed.

Brands need to present a joined-up customer experience both online and offline, as people move between both and expect a consistent brand experience.

Whilst focus in recent years has been on ecommerce, offline has attracted renewed focus as a source of brand experiences and customer service.

This is facilitated by technological developments which are helping retailers do more in-store, but brands need to balance adding value and being 'creepy'.

As people expect a 'total retail' approach brands need to ensure they deliver a service to match, with structural and logistical challenges that require greater integration in companies.

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Media Planning Toolkit: Planning for mobile

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Tony Regan, Warc Best Practice, December 2014, pp. 43-45

This article sets out the key issues in planning for mobile, and provides guidance for incorporating mobile into integrated communications plans. View Summary

This article sets out the key issues in planning for mobile, and provides guidance for incorporating mobile into integrated communications plans.

Mobile adspend is growing rapidly, with social media a particular area of focus, and this trend is expected to continue as mobile devices become central to modern life.

To make the most of this channel, planners need to understand how mobile devices are used, including different patterns and contexts - they aren't just used 'on the go'.

Part of this challenges is helping users move across devices seamlessly: people often start a search on mobile and move to desktop, and single logins should make this easier.

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Meet the four personas of connected consumers

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Jonathan Sinton and Anjali Puri, TNS, Connected Life, November 2014

This article identifies four types of digital media consumer and provides recommendations for strategies that will work best with each group. View Summary

This article identifies four types of digital media consumer and provides recommendations for strategies that will work best with each group.

Two dimensions differentiate connected consumers: the degree to which a consumer is online throughout the day and the degree to which social media connection and content is important to the consumer.

These dimensions also predict four types of digital consumer: Leaders, Functionals, Observers and Connectors.

Leaders are highly invested in digital media and are typically more vocal on social media - this group is far more likely to engage with brands online, meaning owned and earned media need to be managed well.

Functionals are slower, more cautious adopters of technology but, while some may be actively resisting technology, many are simply at the beginning of the adoption curve and brands can aid the transition by providing guidance and reassurance.

Observers are interested and comfortable with technology but have little enthusiasm for social media and brands should focus engagement efforts around functional benefits when targeting this group.

Connectors' primary reason for interacting with the online world is social media, with little interest in the technology, and are most likely to be receptive to a mobile-centric, social-first strategy.

If managing a single brand then it won't make financial sense to target every persona, but if managing a portfolio of products, the fragmented media landscape allows opportunities to diversify strategy to meet the needs of different consumers.

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Getting close to youth: Understanding millenials' themes of life to create Gen-Y-proof brands

This paper sets out research undertaken by Viacom International Media Networks (VIMN) in Northern Europe to better understand the lives and needs of millennials, how these build into trends and how VIMN can best serve this group. View Summary

This paper sets out research undertaken by Viacom International Media Networks (VIMN) in Northern Europe to better understand the lives and needs of millennials, how these build into trends and how VIMN can best serve this group.

Millennials are a key target group for VIMN, as they compete for employees, clients and audiences.

An online research community with participants from ten countries with discussions and blogs on participants' lives and how VIMN content fit into it.

Findings included that today's youth are more positive and feel they have more freedom to be themselves than previous generations, focus on sharing and discussing experiences and avoiding boredom.

Millennials do not have boundaries for time and place, as technology enables them to pursue their interests wherever they are.

To be 'millennial proof' brands should be more human, provide relevance, have a social purpose, be positive and focus on sharing stories, not just sending messages.

12

Sharing and owning: The rise of the hybrid consumer

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Vincent Rousselet, Market Leader, Quarter 4, 2014

This article discusses the rise of the 'hybrid' consumer and explores the underlying trends that are driving this development. View Summary

This article discusses the rise of the 'hybrid' consumer and explores the underlying trends that are driving this development.

The emerging 'hybrid' consumers are happy to spend heavily on the latest Apple product but also to save money on their weekly shop by going to discounters such as Lidl and Aldi.

At the same time, the 'sharing economy' has seen a rise in enthusiasm for products and services available to rent, rather than to own.

This new consumer landscape, which combines previously separate behaviours such as embracing rental with ownership and luxury with austerity, calls for new kinds of segmentation.

13

Hungry for familiar foods: Think global, act local

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Sonya Misquitta and Dheeraj Sinha, Market Leader, Quarter 4, 2014

This article sets out some of the mistakes made by multinational food companies launching products in emerging markets, and explains how to avoid them in the future. View Summary

This article sets out some of the mistakes made by multinational food companies launching products in emerging markets, and explains how to avoid them in the future.

Multinational food companies need to think global and act local, as food is rooted in demography, local cultures, religion, location and economy.

Having made the mistake in the past of assuming their products would sell automatically, multinationals must now gain a true understanding of these local values and provide for them if they are to succeed.

Brands should avoid imposing western cultural concepts, look tot he unorganised market, carefully consider which markets to enter, be attractive to value-conscious consumers and co-opt local favourites.

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Going to the edges for inspiration: Why it's right to talk to 'extreme' consumers even if you are a mass-market brand

This paper argues that people with more interesting and unusual experiences, attitudes and backgrounds – 'extreme consumers' – can unlock insights that transform the work of marketing and innovation teams. View Summary

This paper argues that people with more interesting and unusual experiences, attitudes and backgrounds – 'extreme consumers' – can unlock insights that transform the work of marketing and innovation teams.

To support its case, the paper uses examples from a range of projects, as well as detail from a live case study: the Pepsi brand's global Now Network.

It argues that working with extreme customers improves the company's own engagement with consumer insight and energises relationships between marketing, R&D and insight teams.

On the other hand, the authors argues that a research program that is exclusively concerned with validation from mainstream consumers holds back the potential of global brands to respond more flexibly to the demands and opportunities in the global marketplace.

15

Programmatic buying: A guide for the perplexed

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Erik Sherman, ANA Magazine, Summer 2014, pp. 39-50

This article explores some of the issues surrounding programmatic, addressing marketers' lack of understanding and highlighting key benefits and problems with this method of digital ad buying. View Summary

This article explores some of the issues surrounding programmatic, addressing marketers' lack of understanding and highlighting key benefits and problems with this method of digital ad buying.

To make the best use of programmatic advertising buyers need to understand how it works, but recent research found at least 40% of client-side marketers have low or no awareness of the technology.

Programmatic buying makes the process more efficient, as manually bought space can have as many as 40 to 50 steps, but is still a complex system.

Click fraud and bot traffic are two big issues, and though both are in decline levels still remain much higher than for directly bought ad space.

Other difficulties include unreliable conversion attribution data, difficulties with tracking and data as consumers use mobile more, and ads being placed on inappropriate websites.

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From TV to Total Video: How Integrated Video Planning Can Transition Advertising from 'Upfronts' to 'Allfronts'

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comScore, June 2014

This article explores issues surrounding changes in video viewing habits as more people watch digital video on different devices and how this impacts on audience measurement, and proposes a 'total video' model for more effective advertising. View Summary

This article explores issues surrounding changes in video viewing habits as more people watch digital video on different devices and how this impacts on audience measurement, and proposes a 'total video' model for more effective advertising.

A 'total video' approach to measurement is viewer-centric, providing a single audience metric across platforms, with the ability to report granular details about niche audiences and platforms.

De-duplication is vital for accurate cross-platform measurement and understanding how people are being reached by advertising.

Total video allows the advertising opportunity offered by digital video to be fully realised by making monetising content and ensuring effective advertising easier.

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From multichannel to Total Retail

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Matthew Tod, Admap, July/August 2014, pp. 20-23

This article sets out the need for a 'total retail' approach to shopper marketing, rather than a multichannel approach, with a strong central brand and consistent consumer experience. View Summary

This article sets out the need for a 'total retail' approach to shopper marketing, rather than a multichannel approach, with a strong central brand and consistent consumer experience.

Consumers demand a consistent experience across channels, will use social media to express frustrations and seek reviews, and use mobile for research and shopping.

The role of the store will continue to evolve so businesses must organise themselves around consumers, including seamless operations and a consistent brand experience.

Total retail has four key implications for marketing: the need for a powerful brand story, content which is valuable to consumers and not just interrupting, focussed and relevant messaging, and better search engine optimisation (SEO).

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10 new marketing paradigms

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Grant Leboff, Warc Trends, June 2014, pp. 18-19

This article describes ten new marketing paradigms in the digital world, where information is abundant and attention scarce. View Summary

This article describes ten new marketing paradigms in the digital world, where information is abundant and attention scarce. These are: one-to-many communications becoming many-many communications; return on investment becoming return on engagement; the service economy giving way to the experience economy; broadcasting messages changing to facilitating conversations; advertising becoming advertainment; and the wisdom of crowds shifting to the wisdom of friends. Further, mass market has become mass personalisation; the customer has become a partner instead of king; the world has moved from being a stage to a showroom; and when people customers buy has become more important than who buys.

This report highlights how advertisers are using Instagram, the social network for sharing photos and videos, to build brands and engage with consumers. View Summary

This report highlights how advertisers are using Instagram, the social network for sharing photos and videos, to build brands and engage with consumers. Unlike Facebook, which offers highly targeted options, Instagram should be used as a platform to reach a mass audience and communicate large ideas, with the aim of changing brand perception over time. Due to its focus on visuals, the platform is best used to convey emotions and powerful messages and Instagram wants to ensure that all campaigns carry high-quality imagery that fits into the community. This has made it particularly suitable for high-end campaigns, such as those conducted by the fashion brands, Michael Kors and Hollister. Other brands seeing success on this platform are Ben & Jerry's, the ice cream company, and Taco Bell, the quick-service restaurant chain.

This paper explores opportunities in beauty marketing as increasing numbers of women in Indonesia wear the hijab as a form of expression. View Summary

This paper explores opportunities in beauty marketing as increasing numbers of women in Indonesia wear the hijab as a form of expression. The hijab is an Islamic veil and in Indonesia more than half of women choose to wear it. Research had found an increasing number of young women choosing to wear the hijab, but that rather than a traditional statement these women wanted to portray a free-spirited and dynamic lifestyle. This trend has been witnessed at the same time as a rise in interest in 'halal' cosmetics and beauty products. Research found that women choosing the hijab wanted to be more like 'women in the west', but were concerned that such women were disconnected from their roots. Rather than beauty for self-expression, Indonesian women see beauty as part of their social duty and expectations of their role in society. The hijab was found to be chosen by young women in order to balance the traditional and the modern, allowing experimentation with make up without damaging their reputation. The rise of halal beauty products can also be understood as a result of this balance-seeking, and presents an opportunity for beauty brands.

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The Global Later Lifers Market: How the Over 60s are Coming into their Own

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Euromonitor Strategy Briefings, May 2014

This report discusses the growth of older populations in key markets, and the challenges and opportunities this presents. View Summary

This report discusses the growth of older populations in key markets, and the challenges and opportunities this presents. Many countries are facing challenges surrounding ageing populations, and later life poverty is increasing. However, there are also large numbers of 'healthy and wealthy' older people, who have considerable consumer spending power. For this group maintaining health, making the most of free time and keeping in touch with family are key priorities.

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The Mobile First shopper strategy

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Gareth Ellen, Admap, May 2014, pp. 20-24

This article discusses how a mobile first shopper strategy can be used to engage consumers further, and identifies themes in this area. View Summary

This article discusses how a mobile first shopper strategy can be used to engage consumers further, and identifies themes in this area. Shoppers are increasingly using their mobile phones throughout their purchase journey, but this development does not change their fundamental needs. Two companies which adopted a mobile first strategy early are Unilever and Mondelez, recognising that shoppers are already mobile and so brands need to be too. Examples are given of mobile first campaigns which adapted to local markets, provided utility, featured store locators, gave away product samples and used location data. With mobile, brands need to balance helping shoppers and pushing brand messages. There are lots of possibilities for mobile first shopper strategies, but marketers should keep in mind that these are not 'mobile only', and should not be 'mobile at all costs'.

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The future of mobile advertising

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David Hewitt and Zach Paradis, Admap, May 2014, pp. 25-27

This article describes seven ways in which mobile advertising will be most effective in the future. These are: content and consumer participation to build credibility; native advertising as smaller sc... View Summary

This article describes seven ways in which mobile advertising will be most effective in the future. These are: content and consumer participation to build credibility; native advertising as smaller screens make periphery ads impossible; brand partnerships with networks and sources of inspiration; ads as part of a social community; mobile search; mobile providing continuity in omnichannel marketing; and integrating brands into existing mobile activity.

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Mobile first: Programmatic buying

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Zac Pinkham, Admap, May 2014, pp. 28-29

This article discusses programmatic buying of mobile inventory and the opportunities presented by mobile, and explains some of the key terms. View Summary

This article discusses programmatic buying of mobile inventory and the opportunities presented by mobile, and explains some of the key terms. The amount of data generated by mobile users allows greater targeting of advertising, including by location. The programmatic terms explained in this article include: Mobile Exchange, Premium Programmatic, Private Marketplace, Real-Time Bidding, Demand-Side Platform, Trading Desk, Supply-Side Platform and Data Management Platforms. Understanding programmatic allows marketers to make the most of the opportunities it represents, in terms of optimising campaigns and reaching consumers at key moments.

This paper discusses how Zurich Life, the financial services company, implemented a strategy in Latin America to change how its business worked in response to new challenges. View Summary

This paper discusses how Zurich Life, the financial services company, implemented a strategy in Latin America to change how its business worked in response to new challenges. Economic growth in Latin America has led to the emergence of a new middle class, with distinct heritage and culture from the original middle classes. These changes had challenged Zurich's business model, as segmentation based on socio-economic status and demographics were no longer relevant. It is argued that in the past business leaders could conceive a strategy and implement it across their organisation, but that this has now become much more difficult. Research was undertaken to understand the internal workings of Zurich Life in the context of the wider society, and then an appropriate change strategy was developed in order to respond to changing consumer demands.